Former Sen. George Mitchell tapped to settle PG&E fine for San Bruno explosion

SAN BRUNO -- The same lawmaker who helped broker peace in Northern Ireland and tried the same in the Middle East has been tapped to lead talks over the fine PG&E should pay for the deadly San Bruno blast, officials announced Monday.

Former Sen. George Mitchell is to oversee the negotiations between Pacific Gas & Electric and the California Public Utilities Commission that officials hope will draw to a close the regulatory proceedings that began after the Sept. 9, 2010, explosion.

PUC President Michael Peevey said the commission is grateful for help resolving this "difficult and painful series of cases."

"We are confident Senator Mitchell can help achieve a solution that will resolve these cases sooner rather than later," Peevey wrote in a statement.

PG&E also voiced support for Mitchell's appointment, but some of the utility's critics questioned the former senator's ties to other big utility companies, including one Peevey once ran.

The negotiations have already drawn withering criticism from local officials, lawmakers and the survivors of the blast that killed eight people and destroyed 38 homes. They were angry that an arm of the PUC had asked that a public hearing on the blast, which would help determine PG&E's fine, be suspended to allow the parties to focus on a settlement.

Despite arguments that the hearing was necessary to ward off backroom deals and make public any PG&E wrongdoing in the tragedy, two administrative law judges agreed last week to pause the proceeding until Nov. 1. It was not immediately clear whether Mitchell's appointment would lead to an extension of that deadline.

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PG&E has said it expects a fine of at least $200 million, though a recent report said the utility's parent company could absorb a $2.55 billion penalty. Federal and state regulators say PG&E violated safety rules and made other errors such as sloppy record keeping, which contributed to the blast.

Mitchell, who could not be reached for comment, brings an impressive résumé with him to the bargaining table. The Democrat from Maine served in the Senate from 1980-1995 and from 1996-2000 he chaired the Northern Ireland peace talks, which led to an agreement that ended decades of fighting there. He also led an investigation into steroid use in Major League Baseball, which was sparked by allegations against Giants slugger Barry Bonds and revelations about the Bay Area Laboratory Co-Operative.

But critics quickly questioned Mitchell's appointment. The Utility Reform Network, a watchdog group that is party to the proceedings against PG&E, said Mitchell's law firm, DLA Piper, has a lengthy list of corporate clients, including Southern California Edison, which Peevey once headed, and Sempra Energy.

TURN, like the cities of San Bruno and San Francisco, opposed the move to suspend the public hearing in favor of settlement talks.

"This is a decision that was made behind closed doors," said TURN spokeswoman Mindy Spatt. "The public wants transparency."

Assemblyman Jerry Hill, D-San Mateo, who represents San Bruno, continued his call for the hearing to finish. He said only two weeks of hearings, where PG&E witnesses could be cross-examined, remain.

"Why couldn't they wait two weeks until all the facts are on the table?" Hill asked. "What is PG&E so afraid of?"

The utility issued a statement saying it backed the choice of Mitchell.

"We support the Commission's decision," wrote Tom Bottorff, senior vice president of regulatory affairs. "We are committed to working with Senator Mitchell and the Commission to achieve a fair and comprehensive settlement of these issues."